For farms otherwise dependent on raw agricultural product sales, value-added products and diversification (agritourism, classes, jams and cottage foods, etc.) can tap into more profitable revenue streams. But! Each diversification opportunity presents interesting legal questions for the farm business entity. One of these questions is “should I form a new business entity for the new enterprise?” Fortunately, we have a guide that will explore important considerations for answering that question and it is Chapter 11: Business Structure Considerations When Diversifying or Adding Value to Farm Products which is part of our Farmers’ Guide to Business Structures.
Of course, don’t forget our extensive resources on diversification overall.
If a separate entity is right for your proposed venture, explore all our resources on choosing and setting up a farm business structure right here.